As pointed out in this article, HR’s effectiveness is primarily determined by the value it delivers to key stakeholders both inside (employees, business strategy) and outside (customers, investors, communities) the organization. This value is delivered through 1) insights and initiatives (programs, processes, practices) that enable individual competence (workforce, talent, people), 2) organization capabilities (workplace, culture, and process), and 3) leadership at all levels. These factors collectively establish a portfolio of various initiatives and can be used to help guide the allocation of resources (time, energy, money) to key organization effectiveness priorities. The article offers a few ideas and illustrations on the portfolio concept and can help leaders organize and evaluate the impact of various initiatives on organizational effectiveness. You can also learn more about this free tool–Organization Guidance System (OGS)–through the article. As a separate resource, I am including a reference by Gartner titled, Prioritizing HR Cost Optimization Initiatives. This resource can help CHROs and their teams to evaluate HR initiatives against eight criteria 1) strategic relevance, 2) cost savings and productivity gains, 3) business impact, 4) impact on employee experience, 5) investment requirement, 6) time requirement, 7) HR service delivery risk and 8) stakeholder buy-in) that enable cost reduction without comprising value.